NOTES TO ACCOUNT

Year End: March 2015

1. SIGNIFICANT ACCOUNTING POLICIES

a) Basis of accounting

The financial statements have been brpared in compliance with the accounting standards as specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended). The financial statements have been brpared on going concern basis under the historical cost convention on accrual basis in accordance with the generally accepted accounting principles in India. The accounting policies have been consistently applied by the Company.

All assets and liabilities have been classified as current or non-current, wherever applicable as per the operating cycle of the Company as per the guidance as set out in the Schedule III to the Companies Act, 2013.

b) Use of estimates

The brparation of financial statements in conformity with generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the fi nancial statements and the results of operations during the reporting periods. Although these estimates are based upon management's knowledge of current events and actions, actual results could differ from those estimates and revisions, if any, are recognised in the current and future periods.

c) Intangible assets and amortisation

i) Softwares which are not integral part of the hardware are classifi ed as intangibles and are stated at cost less accumulated amortisation. These are being amortised over the estimated useful life of 5 years.

ii) The Company has acquired exclusive usage rights for 30 years under the build, own, operate and transfer scheme of the public private partnership ('PPP') scheme in respect of properties developed as automated multi-level car parking and commercial space and classified them under the "Intangible Assets - Right on Building and Right on Plant & Machinery".

The Company has arrived at the cost of such intangible assets in accordance with provisions of relevant Accounting Standards. The cost of these rights is being amortised over the concession period in the proportion in which the actual revenue received during the accounting year bears to the projected revenue from such intangible assets till the end of concession period in accordance with the manner brscribed in Schedule II to the Companies Act, 2013.

d) Fixed assets and debrciation

i) Fixed assets (gross block) are stated at historical cost less accumulated debrciation and impairment (if any). Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Building/specific identifiable portions of building, including related equipments are capitalised when the construction is substantially complete or upon receipt of the occupancy certificate, whichever is earlier.

Debrciation on assets (including buildings and related equipments rented out and included under current assets as inventories) is provided on straight-line method, computed on the basis of useful life brscribed in Schedule II to the Companies Act, 2013, on a pro-rata basis from the date the asset is ready to put to use subject to adjustments arising out of transitional provisions of Schedule II to the Companies Act, 2013.

iii) Leasehold land, under perpetual lease, is not amortised. Leasehold land, other than on perpetual lease, are being amortised on time proportion basis over their respective lease periods.

e) Investments

Investments are classified as non-current or current, based on management's intention at the time of purchase. Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as non-current investments.

Trade investments are the investments made for or to enhance the Company's business interests.

Current investments are stated at lower of cost and fair value determined on an individual investment basis. Non-current investments are stated at cost and provision for diminution in their value, other than temporary, is made in the financial statements.

Profit/loss on sale of investments is computed with reference to the average cost of the investment.

f) Inventories

Inventories are valued as under:

i) Land and plots other than area transferred to construction work-in-progress of constructed properties at the commencement of construction are valued at lower of cost/approximate average cost/as revalued on conversion to stock and net realisable value. Cost includes land (including development rights and land under agreements to purchase) acquisition cost, borrowing cost, estimated internal development costs and external development charges.

ii) Construction work-in-progress of constructed properties other than Special Economic Zone (SEZ) projects includes the cost of land (including development rights and land under agreements to purchase), internal development costs, external development charges, construction costs, overheads, borrowing cost, development/ construction materials and is valued at lower of cost/ estimated cost and net realisable value.

iv) Development rights rebrsents amount paid under agreement to purchase land/ development rights and borrowing cost incurred by the Company to acquire irrevocable and exclusive licenses/ development rights in identifi ed land and constructed properties, the acquisition of which is at an advanced stage.

v) Construction/development material is valued at lower of cost and net realisable value.

i) Revenue from constructed properties for all projects commenced on or before March 31, 2012 and where revenue recognition commenced on or before the above date, is recognised in accordance with the provisions of Accounting Standard (AS) 9 on Revenue Recognition, read with Guidance Note on "Recognition of Revenue by Real Estate Developers". Revenue is computed based on the "percentage of completion method" and on the percentage of actual project costs incurred thereon to total estimated project cost, subject to such actual cost incurred being 30 per cent or more of the total estimated project cost.

Revenue from constructed properties for all projects commenced on or after April 1, 2012 or project where the revenue is recognised for the first time on or after the above date, is recognised in accordance with the Revised Guidance Note issued by Institute of Chartered Accountants of India ("ICAI") on "Accounting for Real Estate Transactions (Revised 2012)".

As per this Guidance Note, the revenue have been recognised on percentage of completion method and on the percentage of actual project costs incurred thereon to total estimated project cost, provided all of the following conditions are met at the reporting date:

• required critical approvals for commencement of the project have been obtained;

• atleast 25% of estimated construction and development costs (excluding land cost) has been incurred;

• atleast 25% of the saleable project area is secured by the Agreements to sell/ application forms (containing salient terms of the agreement to sell); and

• atleast 10% of the total revenue as per agreement to sell are realized in respect of these agreements.

(a) For projects, other than SEZ projects, revenue is recognised in accordance with the term of duly executed, agreements to sell/ application forms (containing salient terms of agreement to sell). Estimated project cost includes cost of land/ development rights, borrowing costs, overheads, estimated construction and development cost of such properties. The estimates of the saleable area and costs are reviewed periodically and effect of any changes in such estimates is recognised in the period in which such changes are determined. However, when the total project cost is estimated to exceed total revenues from the project, loss is recognised immediately.

(b) For SEZ projects, revenue from development charges is recognised in accordance with the terms of the co-developer agreements/memorandum of understanding ('MOU'), read with addendum, if any. The estimated project cost includes construction cost, development and construction material, internal development cost, external development charges, borrowing cost and overheads of such project. Revenue from lease of land pertaining to such projects is recognised in accordance with the terms of the co-developer agreements/ MOU on accrual basis.

ii) Sale of land and plots (including development rights) is recognised in the fi nancial year in which the agreement to sell/ application forms (containing salient terms of agreement to sell) is executed and there exists no uncertainty in the ultimate collection of consideration from buyers. Where the Company has any remaining substantial obligations as per the agreements, revenue is recognised on the percentage of completion method of accounting, as per (i)(a) above.

iii) Sale of development rights is recognised in the financial year in which the agreements of sale are executed and there exists no uncertainty in the ultimate collection of consideration from buyers.

iv) Revenue from wind power generation is recognised on the basis of actual power sold (net of reactive energy consumed), as per the terms of the power purchase agreements entered into with the respective purchasers.

v) Income from interest is accounted for on time proportion basis taking into account the amount outstanding and the applicable rate of interest.

vi) Dividend income is recognised when the right to receive is established by the reporting date.

vii) Share of profit/ loss from firms in which the Company is a partner is accounted for in the financial year ending on (or immediately before) the date of the balance sheet.

viii) Rental income is accounted for on accrual basis except in cases where ultimate collection is considered doubtful.

ix) Service receipts, income from forfeiture of properties and interest from customers under agreement to sell is accounted for on accrual basis except in cases where ultimate collection is considered doubtful.

x) Sale of Certified Emission Reductions (CERs) and Voluntary Emission Reductions (VERs) is recognised as income on the delivery of the CERs/VERs to the customer's account and receipt of payment.

h) Unbilled receivables

Unbilled receivables disclosed under note 17 - 'Other Current Assets' rebrsents revenue recognised based on percentage of completion method (as per para no. g (i) and g(ii) above), over and above the amount due as per the payment plans agreed with the customers.

i) Cost of revenue

i) Cost of constructed properties other than SEZ projects, includes cost of land (including cost of development rights/land under agreements to purchase), estimated internal development costs, external development charges, borrowing costs, overheads, construction costs and development/ construction materials, which is charged to the statement of profit and loss based on the revenue recognised as per accounting policy no. - g (i)(a) above, in consonance with the concept of matching costs and revenue. Final adjustment is made upon completion of the specific project.

For SEZ projects, cost of constructed properties includes estimated internal development costs, external development charges, borrowing costs, overheads, construction costs and development/ construction materials, which is charged to the statement of profi t and loss based on the revenue recognised as per accounting policy no. - g (i)(b) above, in consonance with the concept of matching costs and revenue. Final adjustment is made upon completion of the specific project.

ii) Cost of land and plots includes land (including development rights) acquisition cost, estimated internal development costs and external development charges, which is charged to the statement of profit and loss based on the percentage of land/ plotted area in respect of which revenue is recognised as per accounting policy no. g(ii) above to the saleable total land/ plotted area of the scheme, in consonance with the concept of matching cost and revenue. Final adjustment is made upon completion of the specific project.

iii) Cost of development rights is recognised at the rate at which the same have been purchased from the Land Owning Companies (LOCs) as per the agreement.

j) Borrowing costs

Borrowing costs that are attributable to the acquisition and/or construction of qualifying assets are capitalised as part of the cost of such assets, in accordance with notified Accounting Standard 16 'Borrowing Costs'. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. Capitalisation of borrowing costs is suspended in the period during which the active development is delayed due to, other than temporary, interruption. All other borrowing costs are charged to the statement of profit and loss as incurred.

k) Taxation

Tax expense for the year comprises current income tax and deferred tax. Current income tax is determined in respect of taxable income with deferred tax being determined as the tax effect of timing differences rebrsenting the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period(s). Such deferred tax is quantified using rates and laws enacted or substantively enacted as at the end of the financial year.

l) Foreign currency transactions

Transactions in foreign currency are accounted for at the exchange rate brvailing on the date of the transaction. All monetary items denominated in foreign currency are converted into Indian rupees at the year-end exchange rate. Income and expenditure of the overseas liaison office is translated at the yearly average rate of exchange. The exchange differences arising on such conversion and on settlement of the transactions are recognised in the statement of profit and loss.

In terms of the clarification provided by Ministry of Corporate Affairs ('MCA') vide a notifi cation no. G.S.R.913(E) on Accounting Standard - 11 'The Effects of Changes in Foreign Exchange Rates', the exchange gain/loss on long-term foreign currency monetary items is adjusted in the cost of debrciable capital assets/accumulated in 'Foreign Currency Monetary Item Translation Difference Account' (FCMITDA) and amortised over the balance period of long-term monetary items. The other exchange gains/losses have been recognised in the statement of profit and loss. The brmium or discount arising at the inception of forward exchange contracts is amortised as expense or income over the life of the contract. Exchange differences on such contracts are recognised in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognised as income or as expense for the year.

m) Employee benefits

Expenses and liabilities in respect of employee benefits are recorded in accordance with the notifi ed Accounting Standard 15 - Employee Benefits.

i) Provident fund

The Company makes contribution to statutory provident fund in accordance with the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. In terms of the Guidance on implementing the revised AS-15, issued by the Accounting Standards Board of the ICAI, the provident fund trust set-up by the Company is treated as a defined benefit plan since the Company has to meet the interest shortfall, if any. Accordingly, the contribution paid or payable and the interest shortfall, if any is recognised as an expense in the period in which services are rendered by the employee.

ii) Gratuity

Gratuity is a post-employment benefit and is in the nature of a defined benefit plan. The liability recognised in the balance sheet in respect of gratuity is the brsent value of the defined benefit/ obligation at the balance sheet date, together with adjustments for unrecognised actuarial gains or losses and past service costs. The defined benefit/obligation is calculated at or near the balance sheet date by an independent actuary using the projected unit credit method.

Actuarial gains and losses arising from past experience and changes in actuarial assumptions are credited or charged to the statement of profi t and loss in the year in which such gains or losses are determined.

iii) Compensated absences

Liability in respect of compensated absences becoming due or expected to be availed within one year from the balance sheet date is recognised on the basis of undiscounted value of estimated amount required to be paid or estimated value of benefit expected to be availed by the employees. Liability in respect of compensated absences becoming due or expected to be availed more than one year after the balance sheet date is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method.

Actuarial gains and losses arising from past experience and changes in actuarial assumptions are credited or charged to the statement of profi t and loss in the year in which such gains or losses are determined.

iv) Employee Shadow Option Scheme (Cash Settled Options)

Accounting value of Cash Settled Options granted to employees under the "Employee Shadow Option Scheme" is determined on the basis of intrinsic value rebrsenting the excess of the average market price, during the month before the reporting date, over the exercise price of the shadow option. The same is charged as employee benefits over the vesting period, in accordance with Guidance Note 18 "Accounting for Employee Share-based Payments", issued by the ICAI.

v) Other short-term benefits

Expense in respect of other short-term benefits is recognised on the basis of the amount paid or payable for the period during which services are rendered by the employee.

Contribution made towards Superannuation Fund (funded by payments to Life Insurance Corporation of India (LIC)) is charged to the statement of profit and loss on accrual basis.

n) Leases

Assets subject to operating leases are included under fixed assets or current assets as appropriate. Rent (lease) income is recognised in the statement of profit and loss on a straight-line basis over the lease term. Costs, including debrciation, are recognised as an expense in the statement of profit and loss.

o) Employee Stock Option Plan (ESOP)

Accounting value of stock options is determined on the basis of 'intrinsic value' rebrsenting the excess of the market price on the date of grant over the exercise price of the options granted under the 'Employee Stock Option Scheme' of the Company and is being amortised as 'Deferred employee compensation' on a straight-line basis over the vesting period in accordance with the SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 and Guidance Note 18 'Share Based Payments' issued by the ICAI.

p) Impairment of assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount and the reduction is treated as an impairment loss and is recognised in the statement of profit and loss. If at the balance sheet date there is an indication that a brviously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of debrciated historical cost and is accordingly reversed in the statement of profit and loss.

investments that are readily convertible into known amounts of cash and are subject to an insignificant risk of change in value.

r) Contingent liabilities and provisions

Depending upon the facts of each case and after due evaluation of legal aspects, claims against the Company are accounted for as either provisions or disclosed as contingent liabilities. In respect of statutory dues disputed and contested by the Company, contingent liabilities are provided for and disclosed as per original demand without taking into account any interest or penalty that may accrue thereafter. The Company makes a provision when there is a brsent obligation as a result of a past event where the outflow of economic resources is probable and a reliable estimate of the amount of obligation can be made.Possible future or brsent obligations that may but will probably not require outfi ow of resources or where the same cannot be reliably estimated, is disclosed as contingent liability in the financial statements.

s) Earnings per equity share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average numbers of equity shares outstanding during the period are adjusted for events including a bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares).

For the purpose of calculating diluted earnings per share, the net profi t or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. The period during which, number of dilutive potential equity shares change frequently, weighted average number of shares are computed based on a mean date in the quarter, as impact is immaterial on earnings per share.

4.2. Repayment terms and security disclosure for the outstanding long-term borrowings (excluding current maturities) as on March 31, 2014:

(i) Rs. 75,000.00 lac are secured by way of paripassu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.50% and repayment in 4 equal annual installments starting from April 30, 2015 and date of final redemption is April 30, 2018.

From banks:

Secured INR borrowings:

(a) Facility of Rs. 20,833.33 lac, balance amount is repayable in 10 equal quarterly installments starting from May, 2015. The loan is secured by way of:

(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the subsidiary company.

(g) Facility of Rs. 9,048.66 lac.

The aforesaid short-term loan is secured by way of:

Equitable mortgage of immovable property situated at New Delhi, owned by the subsidiary company.

2. The Company has entered into business development agreements with DLF Commercial Projects Corporation and Rational Builders and Developers (partnership firms). As per these agreements, the Company has acquired sole irrevocable development rights in identified land which are acquired/or in the fi nal stages of being acquired by these partnership firms.

In terms of accounting policy stated in Note 1(f)(iv) the amount paid to these partnership fi rms pursuant to the above agreements for acquiring development rights, are classified under inventory as development rights.

3. Disclosure in respect of projects which is covered under the Revised Guidance Note issued by the Institute of Chartered Accountants of India on "Accounting for Real Estate Transactions (Revised 2012)" and where revenue recognition has been stated as per accounting policy 1(g)(i).

4. The Company is primarily engaged in the business of colonization and real estate development, which as per Accounting Standard - 17 on "Segment Reporting" as specifi ed under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended) is considered to be the only reportable business segment. DLF Group is primarily operating in India which is considered as a single geographical segment.

5. In accordance with the requirements of Schedule II to the Companies Act, 2013, the Company has re-assessed the useful lives of the debrciable assets. The debrciation for the year ended March 31, 2015 is higher by Rs. 958.50 lac due to change in useful lives. Further an amount of Rs. 536.59 lac (net of deferred tax impact of Rs. 135.69 lac) has been adjusted to the opening balance of the statement of profit and loss whose remaining useful life is nil as at April 1, 2014.

(a) The Competition Commission of India (CCI) on a complaint filed by the Belaire/Park Place owners Association had passed orders dated August 12, 2011 and August 29, 2011 wherein the CCI had imposed a penalty of Rs. 63,000 lac on DLF, restraining DLF from formulating and imposing allegedly unfair conditions with buyers in Gurgaon and further ordered to suitably modify the alleged unfair conditions on its buyers.

The said orders of CCI were challenged by DLF on several grounds by filing appeals before the Competition Appellate Tribunal (COMPAT). The COMPAT pending hearing and till final orders had granted stay on demand of penalty of Rs. 63,000 lac imposed by CCI.

COMPAT vide its order dated May 19, 2014 accepted the arguments of DLF that since the agreements were entered into prior to coming into force Section 4 of the Act, the clauses of the agreements entered in 2006-07 could not be looked into for establishing contravention of Section 4 of the Act, however COMPAT held that the Company is a dominant player in Gurgaon being the relevant market and has abused its dominant position in relation to certain actions which is violative of Section 4 of the Act and has accordingly upheld the penalty imposed by CCI.

COMPAT further held that CCI could not have directed modifi cations of the Agreement as the power to modify the agreement under Section 27 is only in relation to Section 3 and cannot be applied for any action in contravention of Section 4 of the Act.

The Company has fi led an Appeal in the Hon'ble Subrme Court against the order dated May 19, 2014 passed by the COMPAT. The Hon'ble Subrme Court of India vide order dated August 27, 2014 admitted the Appeal and directed the Company to deposit penalty ofRs. 63,000 lac in the Court within 3 months out of which Rs. 5,000 lac was directed to be deposited within 3 weeks.

The Company fi l ed an application seeking directions to waive the obligations to deposit the remaining sum of Rs. 58,000 lac.

On hearing the application the directions were given by the Hon'ble Subrme Court of India, that Company files an undertaking to deposit the remaining amount of Rs. 58,000 lac in installments, i.e. to deposit Rs. 7,500 lac every month starting from January 7, 2015 till June 15, 2015 and the last installment of Rs. 3,000 lac on July 15, 2015. In compliance of the undertaking, the Company has been depositing Rs. 7,500 lac every month and till date has deposited Rs. 52,500 lac with the Hon'ble Subrme Court of India.

The matter was last listed on March 17, 2015 before the Bench when it was directed by the Hon'ble Subrme Court of India. The matter to be listed at its course.

(b) During the year ended March 31, 2011, the Company received judgment from the Hon'ble High Court of Punjab and Haryana cancelling the lease/sale deed of land relating to IT SEZ Project in Gurgaon. The Company filed Special Leave Petitions (SLP) challenging the orders in the Hon'ble Subrme Court of India.

The Hon'ble Subrme Court of India has admitted the matter and stayed the operation of the impugned judgments till further orders.

Based on the advice of the independent legal counsels, the management believes that there is a reasonably strong likelihood of succeeding before the Hon'ble Subrme Court of India. Pending the fi nal decisions on the above matter, no adjustment has been done in these standalone financial statements.

The Company fi led its reply with SEBI, placed written submissions and participated in the hearings conducted by the Hon'ble Whole Time Member, in which it replied to each allegation levelled in the said Show Cause Notice (SCN).

The Hon'ble Whole Time Member however rejected the reply filed by the Company and vide its order dated October 10, 2014 has restrained the Company and six others from accessing the securities market and prohibiting them from buying, selling or otherwise dealing in securities, directly or indirectly, in any manner, whatsoever, for a period of three years.

The Company has filed an appeal against the said order before Securities Appellate Tribunal (SAT) vide majority order dated March 13, 2015 allowed all the appeals and the impugned order passed by SEBI has been quashed and set aside.

SEBI has fi led a statutory appeal under Section 15Z of SEBI Act before Hon'ble Subrme Court of India.

On April 24, 2015, the Hon'ble Subrme Court of India admitted the appeal filed by SEBI and issued notice on interim application. No stay has been granted by the Hon'ble Subrme Court of India in favour of SEBI.

ii) SEBI also issued a SCN dated August 28, 2013 under Sections 15HA and 15HB of the SEBI Act, 1992 and under Rule 4 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Offi cer) Rules,1995 ("Adjudication Rules"), hearing on which has been completed and the Company has filed its written synopsis/submissions.

By way of order dated February 26, 2015, the Adjudicating Officer of SEBI imposed penalties upon the Company, some of its Directors and officers under Section 15HA and under Section 15HB of the SEBI Act, 1992.

The Company, its Directors and officers have fi led appeal before SAT impugning the order dated February 26, 2015 passed by an Adjudicating Offi cer of SEBI. The Appeal is listed before SAT and in the order dated April 15, 2015, SEBI has undertaken not to enforce the order dated February 26, 2015 during pendency of the appeal.

The Company and its legal advisors believe that it has not acted in contravention of law either during its initial public offer or otherwise. The Company has full faith in the judicial process and is confident of vindication of its stand in the near future.

7. As already reported, in the earlier period(s), disallowance of SEZ profits u/s 80IAB of the Income-tax Act, 1961 were made by the Income Tax Authorities in the assessment of the Company raising demands amounting to Rs. 7,308.99 lac for the assessment year 2011-12; Rs. 7,284.99 lac for the assessment year 2010-11; Rs. 35,523.71 lac for the assessment year 2009-10 and Rs. 48,723 lac for assessment year 2008-09 respectively.

The Company had filed appeals before the Appropriate Appellate Authorities against these demands for the said assessment years. In certain cases partial/full relief has been granted by the Appellate Authorities (CIT Appeal & Income Tax Appellate Tribunal). The Company and Income Tax Department have further brferred appeals before the higher authorities in those cases.

Based on the advice from independent tax experts and the development on the appeals, the management is confi dent that additional tax so demanded will not be sustained on completion of the appellate proceedings and accordingly, pending the decision by the appellate authorities, no provision has been made in these standalone financial statements.

8. A petition was fi led as a Public Interest Litigation (PIL) before the Hon'ble Punjab & Haryana High Court stating that the petitioner therein was a resident of Village Wazirabad, Gurgaon. The petitioner challenged the action of the Government to acquire the land belonging to Gram Panchayat of village Wazirabad, District Gurgaon for public purpose and thereafter selling the same to DLF whereby directions were sought from the court for quashing of the acquisition proceedings under Sections 4 & 6 dated August 8, 2003 and January 20, 2004.

The Petitioner therein also sought quashing of the award dated January 19, 2006 and the Regular Letter of Allotment (RLA) dated February 9, 2010 issued in favour of the Company for 350.715 acres of land.

The High Court, vide its final order dated September 3, 2014, while upholding the acquisition of land has however disapproved the allotment in favour of the Company. The High Court passed an order to keep the RLA dated February 9, 2010 issued in favour of the Company in abeyance and further directed the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) to initiate fresh allotment process for higher returns in respect of the land in question with an option to State to revive the RLA in case no better bid is quoted by the public at large.

The Company has filed a Special Leave Petition before the Hon'ble Subrme Court of India challenging the judgment dated September 3, 2014 passed by Punjab & Haryana High Court. Hon'ble Subrme Court of India issued notice and directed status quo shall be maintained by the Parties. HSIIDC has filed counter affidavit and matter is listed on August 21, 2015 before Registrar for completion of pleadings and service.

9. Hon'ble Subrme Court in the case of L&T on September 26, 2013, has upheld the decision given in case of M/s K Raheja in 2005 that any agreement with prospective buyers prior to completion of construction will be treated as a Works Contract. Karnataka & Maharashtra States had amended their respective VAT Acts after the decision of K Raheja's case in 2005 and Delhi has amended the VAT Act vide notification issued on September 20, 2013 and Haryana has also amended the VAT Act vide notification issued on August 12, 2014 & amnesty enabling provision has been notified on November 5, 2014 for the period prior to March 31, 2014. Except from the State of Kerala, Haryana and Punjab, DLF Group has not received any show cause/assessment notice from any of the States where the projects are located with respect to additional VAT liability in this regard. Further the Company's plea for impleadment with L&T case in the Hon'ble Subrme Court of India has been allowed, which will come up for hearing before regular bench for final order in due course of time.

Moreover based on the terms of the agreement with the buyers, management is of the opinion that in case the tax would be imposed by VAT authorities or already been imposed, as the case may be,the same is recoverable from the respective buyers and where ultimate collection from customers is doubtful, as an abundant caution, adequate provision for the same has been made in these standalone financial statements.

10. Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006 ("MSMED Act, 2006") as at March 31, 2015 and 2014:

11. All loans, guarantees and securities as disclosed in respective notes are provided for business purposes.

12. In the opinion of the Board of Directors, current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet and provisions for all known/expected liabilities have been made.

13. Previous year fi gures has been regrouped/recast, where ever considered necessary to make them comparable with those of current years.